Pyramid Oil Company Reports First Quarter Financial Results


BAKERSFIELD, CA--(Marketwire - May 14, 2009) - Pyramid Oil Company (NYSE Amex: PDO) today announced financial results for its first fiscal quarter ended March 31, 2009.

Revenue was $594,000 versus $1,590,000 in last year's first quarter. The decrease was largely due to lower average crude oil prices, which declined during the first quarter by 51%, or $52.76 per equivalent barrel (BOE), to $38.82 per BOE. This compares with an average price of $91.58 per BOE during last year's first quarter.

Pyramid reduced its operating expenses by 17% to $351,000 from $423,000 in the first quarter a year ago. The Company reported a loss from operations of $219,000 versus operating income of $740,000 in the first quarter a year ago. First quarter net loss was $189,000, or $0.04 per diluted share, versus net income of $834,000, or $0.18 per diluted share, in the comparable year-ago quarter.

John Alexander, president and CEO, said, "The dramatic decline in crude oil prices appears to have bottomed, and we are now seeing average prices that are well above those witnessed during the first quarter. While we cannot predict the future pricing environment, we have significant influence over the fundamental strength our Company. We believe we have effectively positioned Pyramid to weather the downturns and thrive when demand is strong. Our balance sheet includes more than $4.2 million in cash and cash equivalents, $4.4 million in working capital, and is free of long-term debt. Given our sound financial condition, we are actively evaluating opportunities to expand our asset portfolio, particularly in light of the more favorable valuations we are on seeing on oil and gas properties."

Mr. Alexander said additional progress has been made on the Company's Texas natural gas joint venture, and it is expected that a recently re-entered well will be on production before the end of the second quarter. He added that operations on Pyramid's core California fields are proceeding on plan.

About Pyramid Oil Company

Pyramid Oil Company has been in the oil and gas business continuously since incorporating in 1909. Pyramid acquires interests in land and producing properties through acquisition and lease, and then drills and/or operates crude or natural gas wells in an effort to discover or produce oil and/or natural gas. More information about the Company can be found at: http://www.pyramidoil.com.

Safe Harbor Statement

Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements regarding the completion and testing of wells. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Factors that could cause or contribute to such differences include, but are not limited to the value of crude oil or the performance of wells.


                            PYRAMID OIL COMPANY
                         STATEMENTS OF OPERATIONS
                                (UNAUDITED)

                                                Three months ended
                                                     March 31,
                                                 2009        2008
                                              ----------- -----------
REVENUES:                                     $   594,045 $ 1,589,896
COSTS AND EXPENSES:
  Operating expenses                              351,350     422,806
  Exploration costs                                     0     -28,812
  General and administrative                      225,304     232,511
  Taxes, other than income and payroll taxes       48,298      35,510
  Provision for depletion,
   depreciation and amortization                  158,314     162,820
  Accretion expense                                 5,866       5,810
  Other costs and expenses                         24,171      19,552
                                              ----------- -----------

                                                  813,303     850,198
                                              ----------- -----------

OPERATING INCOME (LOSS)                          -219,258     739,698
                                              ----------- -----------

OTHER INCOME (EXPENSE):
  Interest income                                  26,475      22,077
  Other income                                      3,600       9,662
  Interest expense                                   -415        -641
                                              ----------- -----------

                                                   29,660      31,098
                                              ----------- -----------
INCOME (LOSS) BEFORE
 INCOME TAX PROVISION (BENEFIT)                  -189,598     770,796
  Income taxes
    Current                                      -103,383      91,625
    Deferred                                      103,000    -155,100
                                              ----------- -----------
                                                     -383     -63,475
                                              ----------- -----------

NET INCOME (LOSS)                             -$  189,215 $   834,271
                                              =========== ===========

BASIC INCOME (LOSS) PER COMMON SHARE          -$     0.04 $      0.18
                                              =========== ===========

DILUTED INCOME (LOSS) PER COMMON SHARE        -$     0.04 $      0.18
Weighted average number of
 common shares outstanding                      4,677,728   4,677,728
Diluted average number of
 common shares outstanding                      4,677,728   4,677,728
                                              =========== ===========



                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                                  ASSETS

                                               March 31,   December 31,
                                                  2009         2008
                                              (Unaudited)   (Audited)
                                              ------------ ------------
CURRENT ASSETS:
  Cash and cash equivalents                   $    959,369 $  1,793,563
  Short-term investments                         3,309,269    2,789,099
  Trade accounts receivable                        299,417      213,588
  Income taxes receivable                           25,555            0
  Crude oil inventory                               69,831       82,025
  Deferred income taxes                            112,000      108,000
  Prepaid expenses and other assets                158,164      186,353
                                              ------------ ------------

     TOTAL CURRENT ASSETS                        4,933,605    5,172,628
                                              ------------ ------------

PROPERTY AND EQUIPMENT, at cost
  Oil and gas properties and equipment
   (successful efforts method)                  15,845,056   15,755,472
  Capitalized asset retirement costs               382,550      382,550
  Drilling and operating equipment               2,109,993    2,109,993
  Land, buildings and improvements               1,065,371    1,065,371
  Automotive, office and other
   property and equipment                        1,162,324    1,162,324
                                              ------------ ------------

                                                20,565,294   20,475,710
  Less: accumulated depletion, depreciation,
   amortization and valuation allowance        -16,305,471  -16,147,157
                                              ------------ ------------

                                                 4,259,823    4,328,553
                                              ------------ ------------
OTHER ASSETS
  Deposits                                         250,000      250,000
  Deferred income taxes                            402,245      509,245
  Other Assets                                      17,013       17,013

                                              ------------ ------------

                                              $  9,862,686 $ 10,277,439




                            PYRAMID OIL COMPANY
                              BALANCE SHEETS

                    LIABILITIES AND STOCKHOLDERS' EQUITY


                                               March 31,   December 31,
                                                  2009         2008
                                              (Unaudited)   (Audited)
                                              ------------ ------------
CURRENT LIABILITIES:
  Accounts payable                            $     67,282 $     40,820
  Accrued professional fees                        101,519      130,261
  Accrued taxes, other than income taxes            81,067       76,222
  Accrued payroll and related costs                 69,185       50,451
  Accrued royalties payable                        144,088      132,472
  Accrued insurance                                 40,480       59,096
  Accrued income taxes                                   0      239,815
  Current maturities of long-term debt              24,135       23,901
                                              ------------ ------------

     TOTAL CURRENT LIABILITIES                     527,756      753,038
                                              ------------ ------------

LONG-TERM DEBT, net of current maturities           14,518       20,640
                                              ------------ ------------

LIABILITY FOR ASSET RETIREMENT OBLIGATION        1,157,572    1,151,706
                                              ------------ ------------

COMMITMENTS

STOCKHOLDERS' EQUITY:
  Preferred stock-no par value;
   10,000,000 authorized shares;
   no shares issued or outstanding                       0            0
  Common stock-no par value;
   50,000,000 authorized shares;
   4,677,728 shares issued and outstanding       1,306,010    1,306,010
  Retained earnings                              6,856,830    7,046,045
                                              ------------ ------------

                                                 8,162,840    8,352,055
                                              ------------ ------------

                                              $  9,862,686 $ 10,277,439
                                              ============ ============

Contact Information: CONTACTS: John H. Alexander President and CEO Pyramid Oil Company 661-325-1000 Geoff High Principal Pfeiffer High Investor Relations, Inc. 303-393-7044